View more on these topics

3bn needed for pension rescue

The Government’s 20m annual commitment to the scheme for collapsed pension funds is woefully inadequate and it only support a fraction of those who have lost out, says independent pension consultant Dr Ros Altmann.

She says the 20m for the Financial Assistance Scheme would only buy 6,000 a year income for 130 people. Altmann points out that 65,000 workers at firms such as ASW, Dexion, Perivan and IFI have lost most or all of their pensions so the Government pledge falls far short.

Even if the 20m was used to buy non-indexed level annuities of 6,000, only 200 people would benefit, according to calculations made using the FSA’s annuity rate calculator. The 20m a year has been guaranteed by the Government for 20 years, equating to a total of 400m.

Altmann believes the Government’s claims that it cannot finalise the intricacies of how the FAS will work until it has reviewed all the data available, is a fudge aimed at placating backbenchers until after the next election.

She says collating further data is a waste of time and money when thousands of people are affected and the cash spent on carrying out more research would be better spent on the FAS.

Altmann is calling for the Government to commit £75m a year for 40 years, which would amount to £3bn, and to stop schemes in wind-up from buying annuities.She says: “We already know that thousands of people are affected. Most long-serving members have lost more than £6000, so £2m a year could just give a tiny number of people a fraction of their pensions. The injustice will remain.”

Recommended

Loan star

While researching the buy-to-let market, an MM hack was pointed in the direction of UK mortgage expert Owen Carey Jones.Searches could only unearth the director, writer and luvvy OMC Jones, famous auteur of the film Baby Blues.Further probing led to the amazing disc-overy that they are one and the same person.Jones is directing a new […]

Tenet boosts business with Friends by 85%

Friends Provident has inc-reased its proportion of Tenet’s business by 85 per cent over the last two years but business with Millfield has tailed off. Tenet has grown from being the top five distributor which does the least amount of business with Friends to being its second-biggest partner. Figures from market analyst Touchstone, based on […]

Back to basics

The final rules for the basic advice regime were published last week but what changes have been made since the FSA first put forward its controversial proposals and asked the industry for opinions?Aifa is not sure that much progress has been made and director of policy Fay Godd-ard is not impressed: “The key points have […]

A bull case for US equities?

Neptune video: a bull case for US equities?

Watch Felix Wintle, head of US equities at Neptune, discuss why he believes US equities are in a structural bull market and the key factors that can drive the S&P 500 higher.

In the video, Wintle addresses the following:

• The US market and why — despite equities rising from 2009 — he believes the structural bull market only started in 2013
• Key economic and corporate factors that can drive the S&P 500 higher
• Investment themes and sectors offering exposure to the domestic recovery

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment